Motion Control Resources
Pro-Dex, Inc. Announces Fiscal Third Quarter and Nine Month Results
OMS Motion Inc. Posted 05/11/2011
Revenues Up 12% and Operating Income Up 171% For Comparative Nine-Month Periods
IRVINE, Calif. -- PRO-DEX, INC. (Nasdaq: PDEX) today announced financial results for its fiscal third quarter and nine months ended March 31, 2011.
Sales for the quarter ended March 31, 2011 were $7.6 million, 24% higher than sales of $6.2 million for the corresponding quarter in 2010. For the nine months ended March 31, 2011, sales were $19.6 million, 12% higher than sales of $17.5 million for the corresponding period in 2010. These results for both the quarter and the nine-month periods were due primarily to increases in sales of the Company's medical device products to its two largest customers, with the nine-month period also benefitting from growth in sales of the Company's motion control products.
Operating income was $1.1 million for the quarter, a 177% improvement from $409,000 for the corresponding 2010 period. For the nine months ended March 31, 2011, operating income improved 171% to $2.1 million from $778,000 for the corresponding nine-month period in 2010.
Net income for the 2011 quarter was $868,000, or $0.26 per fully-diluted share, which represents a 399% increase from net income of $174,000, or $0.05 per fully-diluted share, for the corresponding 2010 quarter. For the nine months ended March 31, 2011, net income was $1.6 million, an increase of 72% from net income of $937,000 for the corresponding period in 2010.
Gross profit for the quarter ended March 31, 2011 increased to $2.9 million, a 38% gross profit margin, compared to gross profit of $2.3 million, a 37% gross profit margin, for the year-ago period. For the nine months ended March 31, 2011, gross profit was $7.5 million, a 38% gross profit margin, compared to gross profit and margin of $6.2 million and 35%, respectively, for the corresponding nine-month period in 2010. The increase in gross profit as a percentage of sales during both periods was due to a change in mix toward sales of medical device and motion control products at relatively higher margins, and to cost reductions.
Mark Murphy, the Company's President and Chief Executive Officer, commented, "We are very pleased with the results through the first nine months of fiscal 2011. Sales and profitability for the third quarter continue to be strong, however looking forward, we remain committed to taking the necessary steps to diversify our customer base as these results may not represent the future buying pattern of our largest customer."
The Company also announced that Mr. Paul Rudzinski has joined the Company as Vice President of Sales. Mr. Rudzinski brings 29 years of sales and sales leadership experience, most of which has been in the medical device space. Mr. Murphy commented "We are delighted to have Paul join us and believe that the combination of his experience, leadership, and industry relationships will connect the substantial capabilities of Pro-Dex with the right customers."
Commenting on the Company's cash generation in the third quarter, Mr. Murphy concluded, "During this nine-month period of increased sales which was accompanied by higher levels of accounts receivable and inventory, Pro-Dex nonetheless generated $1.8 million of cash from operations."
Investors and analysts are invited to listen to a broadcast review of the Company's fiscal 2011 third quarter financial results today at 9:30 a.m. Eastern Time (6:30 a.m. Pacific Time) that may be accessed by visiting the Company's website at www.pro-dex.com. The conference call may also be accessed at www.InvestorCalendar.com. Investors and analysts who would like to participate in the conference call may do so via telephone at (877) 407-8033, or at (201) 689-8033 if calling from outside the U.S.
For those who cannot access the live broadcast, a replay will be available from two hours after the completion of the call until midnight (Eastern Time) on May 21, 2011 by calling (877) 660-6853, or (201) 612-7415 if calling from outside the U.S., and then entering account number 286 and conference I.D. number 372315. An online archive of the broadcast will be available on the Company's website for a period of 365 days.
Pro-Dex, Inc., with operations in California, Oregon and Nevada, specializes in bringing speed to market in the development and manufacture of technology-based solutions that incorporate miniature rotary drive systems, embedded motion control and fractional horsepower DC motors, serving the medical, dental, semi-conductor, scientific research and aerospace markets. Pro-Dex's products are found in hospitals, dental offices, medical engineering labs, commercial and military aircraft, scientific research facilities and high tech manufacturing operations around the world. For more information, visit the Company's website.
Statements herein concerning the Company's plans, growth and strategies may include 'forward-looking statements' within the context of the federal securities laws. Statements regarding the Company's future events, developments and future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company's actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business concerns of the Company set forth in the Company's filings with the Securities and Exchange Commission.